Private car purchase

muzer

I'm looking at buying a car privately but the person selling has already informed that he has outstanding finance on the car. he's saying that once he sells the car he will pay off the outstanding balance, but how can I be sure? If I pay him cash, happily drive off in the car and he decides not to pay off the finance agreement where do I stand? He says that the finance agreement is non-transferrable and therefore it is purely between him and the finance company Any thoughts would be much appreciated.

YorkshireBoy

muzer wrote:

Any thoughts would be much appreciated.

Walk away, briskly! The seller's given you a free HPI check - look how much money you've saved already.

tonyg_2

YorkshireBoy wrote:

Walk away, briskly! The seller's given you a free HPI check - look how much money you've saved already.

Yes I do agree that you need to be careful. I was in a similar situation - but potentially more "dangerous" - the seller was moving to the USA the following day! In my case this was defintely the car I was after and a good price. I was advised by everyone, including The AA, not to go ahead. However I agreed with the seller that as long as he payed off the outstanding-finance BEFORE I payed him, and that I got a fax from the finance company confirming this, then I would go ahead. It all worked out very well for me.

mr_accountant

it is a 100% buyers market out there, do you need to take this risk? personally i would avoid, bit depends on your risk preference.

muzer

Thanks all - what I as hoping for was what tonyg mentions but the seller is telling me he doesn't have the money to pay the finance off until he sells the car! Having slept on it I think i'll be taking the option of a sprint in the opposite direction. Cheers

Debt_Free_Chick

muzer wrote:

Thanks all - what I as hoping for was what tonyg mentions but the seller is telling me he doesn't have the money to pay the finance off until he sells the car! Having slept on it I think i'll be taking the option of a sprint in the opposite direction. Cheers

Rubbish! He doesn't own the car at the moment - it's not his to sell.

The registered owner of the vehicle is the finance company ... it will only change once he pays off the finance. He should have taken a flexible loan or simply found the money to pay off the finance first. Then, and only then, is he free to sell it.

He may be trying it on. Or he may, genuinely, not understand the ownership position. Up to you whether you point it out to him

ArsenalFC

The seller maybe genuine or maybe not, who knows? If you can agreed with him in writing and have an arrangement that u will agree to buy if he pays the finance off in front of you and have the finance company to fax you the paperworks to confirm that all outstanding finance has been paid.

Maybe too much hassle, really is upto you to decide. The seller to me is genuine as he declared to you the car is still finance. If he was to do a runner with your money he would not have disclosed it. Then HPI is your only way of finding out, which you may not have choose to use the service.